Senior Midterm

A 500-g packet of chocolate costs $2.50. Assuming inflation averages 2.8% per annum over each of the next 3 years, how much will the chocolate cost in three years?

• $2.64

• $2.72

• $2.79

• $2.87

• $2.95

An investment of $10 000 at the rate of 8% per annum, compounded quarterly, will reach $14 800 in close to:

• 1 year

• 2 years

• 3 years

• 4 years

• 5 years

An investment of $10 000 to be invested for a period of 5 years and compounded quarterly at 3.75% p.a. will have a future value closest to which of the following:

• $10.480

• $12,020

• $12,050

• $20,900

• $19,450

An amount of $12 000 is invested for a period of 9 months at 3% p.a. compounded monthly. The value of k in the compound interest formula is:

• 0.75

• 1

• 3

• 9

• 12

An amount of $12 000 is invested for a period of 9 months at 3% p.a. compounded monthly. The value of n in the formula is:

• 0.75

• 1

• 3

• 9

• 12

An amount of $12 000 is invested for a period of 9 months at 3% p.a. compounded monthly. The value of FV at the end of the time period would be closest to:

• $12,030

• $12,070

• $12,273

• $15,657

• $15,714

How long would it take for $5000 invested at 5% p.a. compound interest with yearly rests to double in value?

• 5 years

• 7 years

• 10 years

• 14 years

• 20 years

An investment of $6000 was placed for 3 years at 4.25% p.a. compounded annually. How much more would be collected if the investment was compounded quarterly?

• no correct answer

• $13.36

• $32.97

• $46.33

• $52.29

Compound interest on $2500 for 5 years at 4% per annum is

• $432

• $542

• $442

• $452

• $532

The principal that amounts to $4913 in 3 years at 6¹/₄ % per annum compound interest, compounded annually, is

• $3096

• $4076

• $4085

• $4096

• $3076